Business Combinations Essay Example | Topics and Well Written Essays - 500 words

Business Combinations - Essay ExampleAccording to the FASBs website, this project is being deliberated receivable to the fact that the guidance provided in Statement 141 is believed to be inadequate or inconsistent with the conceptual framework. Therefore, the focus of this project is the issue of the existing guidance for applying the science method. The primary objective of the project is to create a standard of accounting for business combinations that can be used for both domestic and global monetary reporting. The goal is to establish a standard that encompasses a common set of principles and guidance that yields information useful for decision-making. Furthermore, the Boards believe a standard should improve the usability of fiscal information in regard to business combinations by explaining which assets and liabilities are to be recognized, by requiring that the assets obtained and the liabilities taken on are measured consistently and relevantly, and by ensuring that deal events are comparably accounted for via a clearly defined scope of the standard.The Boards also made an assertion regarding the responsibilities of an acquirer once control of an acquiree is obtained. In addition, the recognition principle, reasonable value measurement principle, and disclosure principle were confirmed as the main principles for applying the acquisition method.b.